Hive is a compounding machine.
This is something that many do not realize when they first join the ecosystem. It is a trait that is going to generate a huge amount of abundance. This, of course, applies more to than just wealth although we will discuss that since it is something quantified.
Throughout the entire ecosystem, we see this taking place. It is difficult to notice in the early stages yet it exists. The decentralized nature of things means we are going to see thing go exponential at some point. This is in alignment with some larger trends we see taking place around the world.
In this article we will discuss how Hive operates and where it can lead.
With the passage of time, we see growth. This appears to be a basic law of nature. Hive is a complex, organic system that takes on a life of its own.
Many look at something like this and wonder how can it be successful? There is no leader, no face of the organization. From what we can see, there is no plan as to how to progress forward. In many ways, things move slowly.
That said, with a little digging, we can see how the concept of compounding is present. Everything on Hive ends up tying into something else. Nothing operates in a vacuum. This is an important concept to keep in mind.
Everything has an impact and can be leveraged for larger gain. Again, this is more than just financial although it does apply.
In a realm where things are permissionless and open, the impact in one area can extend to another. This is how we realize non-linear effects.
Hive captures this with development, users, money, and reach. There are many ways to feed into this system. It is slow at the beginning yet, over time, does accelerate.
The chart above show the basic concept of an exponential growth chart. It is mapping out global GDP. As we can see, over the last couple centuries things exploded. We want to use this concept when thinking about Hive.
We often discuss the idea of Hive as an economy. At the same time, we look at ourselves as individual businesses. From this perspective, we can conclude there are roughly 8,000 businesses operating on Hive.
Here is where things get interesting. As each of these improves individual performance, in whatever way that it, we can see how the entire ecosystem grows. Looking at the chart, it might not be easy to see since the early days look rather flat. Of course, we also notice the flat period can go on for a long time.
That said, we also have to keep in mind that this is a linear chart. If we look at it on a log scale, this is what we see.
This gives us a better representation of what took place. From this, we can easily see there was progress being made yet it doesn't look that way from the end perspective. In comparison, things were slow. Another way to describe this was an economic grind.
Isn't that how it feels each day on Hive? We come together and grind our way forward. The early days on our Hive journey are difficult. The growth of our accounts is slow.
Nevertheless, the charge clearly shows what happens over time. As the entire ecosystem expands, our personal stake also grows. Those who spent more than a few years consistently active on Hive realize this.
Imagine for a moment if you were immortal. Let us say in addition to this capability, you could leave Earth and head elsewhere. Being one of the early Earthlings, you spend the first 1,000 years on this planet. However, after that time and effort, you had little to show for it. Thus, you made the decision to head elsewhere in the year 1,002.
Notice what you would have missed?
Hive is much different as compared to 5 years ago. Back in those days there was one reward pool. We had no second layer tokens. One received $HIVE and HBD. Today, we know the story is completely different.
We also had a lot fewer applications. There were basically two front ends to utilize. Games were rather limited with Splinterlands still in the concept phase. We had zero NFT integration since that wasn't much of an industry. As for DeFi, we were basically left with curating and delegating HP.
From this perspective, it is easy to see how far Hive has come. Even in the last 3 years, things changed a great deal. Now we embark upon a new year with PsyberX, Leofinance, and Ragnarok entering an alpha period. These are just a few of the items on tap for 2023.
We recently learned that Podping is now accounting for 15% of the updates that Podcasting applications use. This project is inserting itself as the future indexing protocol for that industry. How much value does that provide to Hive?
All of this is reflected in our wallets. Anyone holding $HIVE is participating since there is stake. Hence, one has a vested interest in the success. Of course, there is also the incentive to enhance one's holdings.
Here is where the "Hive as my business" idea comes forth. Whatever one is involved with, there is a monetary component. Even if something is not direct, simply holding the base coins (along with layer 2 tokens) means that one benefits financially.
Think of all the different ways that one's wallet can grow. We have rewards from posts and comments. There is curation. Staking of coins or tokens often provides a significant return. There is adjustment for inflation at the base layer.
Of course, much of this is enhanced by having more followers. When we get involved with a community, our reach expands. Through this, we can get involved with some "local" whales. Their support within the community can help our cause (business).
We then can turn this concept to development. As more applications roll out, more options are provided. Even if there is no token associated, we can enhance our reach. There is another team to support. These people could be onto something huge. We offer our services (time and effort) in return for some future gain. This, of course, can come in many forms, most indirect.
Then we have the relationships that can be forged. This is a vital component tied to resiliency. There are many on Hive who will not abandon the community because of the bonds they have to others. In fact, that is one of the reasons Hive came about. Some did not like the idea of their friends being beholden to Justin Sun so a fork was implemented.
All of this serves to put Hive on a path that can mirror what was above. From a pure financial perspective, those active in different communities can see this with their own accounts. If one charted their holding in coins and tokens, it is easy to see how a year or two of activity can look like that.
This is what compounding does. We can both actively participate to enhance our holdings while enjoying a passive return that comes from some of the DeFi tied to Hive.
At the same time, with each passing year, more options are available due to the continued development and building of the ecosystem. This is where the exponential gains ultimately will come from.
Hive really is the epitome of a compounding machine because we have the benefit of 8,000 businesses operating in a manner that expands their own stake. Through this, we can see how some of those actions are having a larger impact.
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